DUBAI: Most Gulf Arab markets fell yesterday but were little affected by a decision by the United Arab Emirates to withdraw from Gulf Arab plans for monetary union.
“I don’t think it will have much of an impact. The market will see it as a non event,” said Shahid Hameed, head of asset management GCC at Global Investment House in Kuwait. Markets closed lower after mixed trading for much of the session, but oil prices steadying above $60 a barrel helped limit declines.
“Last night in the US we had a mixed session so we are reflecting the same sentiment,” said Hameed. “Volumes are decent and markets are holding up which is a positive sign.”
Saudi Arabia’s Tadawul All-Share Index (TASI) eased 0.17 percent to 6,052 points, after three days of rises. Al Rajhi Bank fell 1.05 percent and Saudi Basic Industries Corp. SABIC 1.11 percent.
“Technically the market needs to close above 6,100 levels in the coming days to avoid the formation of a negative technical pattern known as a ‘triple top.’ Meanwhile, we are watching the index closely as compared to the 5 days exponential moving average as an early sign of weakness; the current level of this average is 6,011,” said Faisal Alsayrafi, managing director and CEO of Financial Transaction House.
Property and financial stocks helped pull bourses in the UAE marginally lower, with RAK Bank leading declines in Abu Dhabi, falling more than 5 percent. Logistics firm Aramex was the biggest loser in Dubai, falling nearly 5 percent.
Both Kuwait, Oman and Saudi Arabia fell on profit-taking. Bahrain extended declines for a third trading day and was the region’s biggest loser falling 1.16 percent.
Qatar was the only market to rise, extending gains into a third trading day. The benchmark QSI rose 0.32 percent to 6,709 points. Barwa Real Estate advanced 2.09 percent and Al-Khaliji Commercial Bank climbed 2.56 percent.
